9:27 am, November 10, 2022
Demand by used car dealers for the Fiesta has risen since Ford announced it was ending production of the model.
That’s according to the latest data from Dealer Auction’s monthly Retail Margin Monitor, which also saw continuing high margins from Land Rover plus a surprise entry from Mini.
The Land Rover Discovery Sport and Land Rover Range Rover Evoque continued their hold on the top two model spots in October, with an average retail margin of £3,720 and £3,270 respectively.
It marks the second consecutive month for the Discovery Sport at number one and the fourth consecutive month for the Evoque at number two.
Meanwhile, the Mini Convertible entered at number six in the top 10 models chart with an average retail margin of £2,700.
The trade-to-trade auction site for used vehicles said that given the ‘impressive margin’, that might mean savvy dealers are getting ahead of the game and finding stock ahead of next summer, when Ford’s Cologne factory ceases production of the supermini.
At brand level, Land Rover is strong at the top with an average retail margin of £3,320, followed by Lexus (£2,930) and Jaguar (£2,780).
Last month, luxury brands such as BMW, Jeep and Mercedes-Benz held 70 per cent of the table, including a new entry for Alfa Romeo in the number 10 spot with an average margin of £2,190.
Kieran TeeBoon, marketplace director of Dealer Auction, which was created via a joint venture between Cox Automotive and Auto Trader, said: ‘We’re seeing a strong majority of luxury brands in the top 10 that offer dealers the greatest opportunity to earn high profit margins.
‘Although we may often see a recurrence in the brands holding top spots, what’s going on further down the table can be more interesting.
Source: Dealer Auction
‘The appearance of Alfa Romeo reinforces the importance of having a diversified stocklist and identifying the makes and models that not only sell well, but ultimately suit the specific needs of your business.’
Auto Trader recently reported a surge in demand for the Ford Fiesta, after Ford said it was ending production of the iconic hatchback in June 2023.
Dealer Auction said it had also seen a jump in the volume of Ford Fiestas sold, with a 17 per cent increase on the previous month and an average profit margin in October of £1,610.
TeeBoon said: ‘Although we aren’t seeing the Fiesta in our retail margin top 10, it’s clear that it remains popular with dealers, who are stocking up on the model before production ends.
‘We’ll see what the consumer demand holds for the Fiesta over the next few months – it’s definitely one for dealers to watch!’
Richard Walker, data and insights director at Auto Trader, added: ‘With Ford confirming the end in production after four decades, we saw demand for the Fiesta rocket on our marketplace, with the volume of advert views shooting up by nearly nine per cent in just a week.
‘Although it’s too early to record a notable impact on average prices, demand is only set to increase, which – coupled with the squeeze on supply – means that retail prices for the iconic hatchback are destined to go in one direction, offering real margin potential for retailers.
‘More broadly, the robust margin opportunities are in line with the ongoing growth in retail prices that we’re tracking across the market, increasing 8.1 per cent year on year in October.
‘Crucially, average prices were up £178 last month versus September and a significant £548 on August, marking four consecutive months of positive or neutral month-on-month price movements.’
